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maxonik [38]
3 years ago
12

Shen has plans to go to an opera and already has a $100 nonrefundable, nonexchangeable, and nontransferable ticket. Now Valerie,

whom Shen has wanted to date for a long time, asks him to a party. Shen would prefer to go to the party with Valerie and forgo the opera, but he doesn't want to waste the $100 he spent on the opera ticket. From the perspective of an economist, if Van decides to go to the party with Amy, what has he just done?
1. Incorrectly allowed a sunk cost to influence his decision

2. Made a choice that was not optimal

3 Correctly ignored a sunk cost
Business
1 answer:
iren [92.7K]3 years ago
7 0

Answer:

3. Correctly ignored a sunk cost

Explanation:

Sunk costs refer to those costs which have been incurred in the past, which are non recoverable and which have no current or future benefits.

Sunk costs are considered as irrelevant for decision making process as they do not relate to current period and have no future implications. For example, research and development expenditure incurred in the past represents a sunk cost.

In the given case, the ticket for opera was already purchased for $100 which can now neither be recovered nor transferred. Thus this cost is irrelevant for decision making as expenditure has already been made. When Shen decided to go for a party instead of the concert, Shen has correctly ignored a sunk cost.

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National defense is a good that is non excludable and nonrival in consumption. Suppose that, instead of national defense being p
timama [110]

Answer:

Alan is better off by $15

Explanation:

the number of citizens in latvia = 10

if citizens were levied $10 each, total amount

= 10*10

=$100

each persons valuation = 100*0.25

= $25

$25 is also Alans valuation sice he is a part of this population.

since he contribited $10, his net gain would be

$25.00 - $10.00

= $15.00

Alan is better of by $15 in the tax system.

8 0
3 years ago
Tri Fecta, a partnership, had revenues of $367,000 in its first year of operations. The partnership has not collected on $45,800
inessss [21]

Answer:<em> </em><em>$ 155,440</em>

Explanation:

Receipt:  

Cash received from customer(367,000 - 45,800)           321,200

Investment                                                                           47,000

Borrowed money                                                                26,000

Total Receipts                                                                   394,200

Disbursement:  

Payment to vendor(240,000 - 39,600)                           200,400

Salary                                                                                   26,200

Interest                                                                                   2,860

Insurance policy                                                                     9,300

Total Disbursement (B)                                                       238,760

Cash balance (A - B)                                                            155,440

7 0
2 years ago
Clay Corporation manufactures two styles of lampslong dasha Bedford Lamp and a Lowell Lamp. The following per unit data are​ ava
mote1985 [20]

Answer:

$ 10

Explanation:

Given:

For Bedford lamp

Sales price = $ 26

Variable cost = $ 16

Machine hours required per unit = 1

Now,

the contribution margin per unit = Sales price - Variable cost

= $ 26 - $ 16

= $ 10

therefore,

the contribution margin per machine hour is calculated as:

= contribution margin / machine hours

or

= $ 10 / 1

or

= $ 10

hence,

the contribution margin per machine hour for the bedford lamp is $ 10

4 0
3 years ago
The primary goal of ________ is to get the right people interested in working for an organization or in a specific job, then per
-BARSIC- [3]

Recruiting.

Recruiting is the process of attracting, screening, selecting, and retaining top talent for jobs.

4 0
2 years ago
Read 2 more answers
Baltimore Baking is preparing its cash budget and expects to have sales of $30,000 in January, $35,000 in February, and $35,000
Tcecarenko [31]

Answer:

The correct answer is $33,000.

Explanation:

According to the scenario, the given data are as follows:

Jan sales = $30,000

So, Amount collected in March of Jan. = 40% x $30,000 = $12,000

Feb sales = $35,000

So, Amount collected in March of Feb. = 40% x $35,000 = $14,000

Mar. sales = $35,000

So, March cash sales = 20% x $35,000 = $7,000

So, we can calculate the total cash receipts in march by using following formula:

Total cash receipts in march = Amount collected in March of Jan + Amount collected in March of Feb + March cash sales

= $12,000 + $14,000+ $7,000

= $33,000

6 0
2 years ago
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